In a manner that is analogous to that of the United States, regulators in Canada have been increasing the pressure they exert on active crypto companies in the region.
As a result of the burdensome regulatory climate, a number of exchanges are making preparations to relocate outside of the nation.
Coinbase, a cryptocurrency exchange, has expressed a strong preference to keep its operations in Canada.
According to a source with knowledge of the situation, Coinbase is reportedly in the process of having discussions with Canadian authorities right now.
Coinbase, which has its headquarters in the United States, is currently in the process of looking for the required license to enable it to continue its business activities in the country.
The Canadian cryptocurrency exchanges Coinbase and Others
The cryptocurrency exchange will be able to establish itself as a legitimate enterprise with the assistance of the license.
Elliott Suthers, Coin base’s director of communications, stated (1) the following while providing the media outlet with a briefing regarding the company’s commitment to the Canadian market:
We have not wavered in our dedication to the Canadian market as a vital part of our strategy for expanding into overseas markets.
On the other hand, according to sources who are aware of the situation but prefer to remain secret, Binance has decided to exit Canada due to the tightening of regulations that Canada has implemented regarding cryptocurrency exchanges.
On the other hand, the company’s executives have taken a different approach.
Recently, a spokeswoman for the cryptocurrency exchange Binance stated that the company “had not made definitive plans yet.” Binance, according to one of the company’s other executives, “is actively engaging with the [Canada Securities Administrators] in its quest of registration.”
Canada Is Putting More Restrictions On Cryptocurrency
According to a number of sources who are aware of the situation, the authorities in Canada had set the date of March 24 as the deadline for cryptocurrency companies to strengthen the regulations surrounding digital assets.
Quite a few years ago, Canada was involved in a high-profile exchange disaster with QuadrigaCX. This disaster occurred.
Canada has only this past month, in February, implemented a new regulatory framework that mandates the separation of assets that are being held in custody, in addition to tightening the restrictions regarding re-hypothecation, margin trading, and other activities.
There has been a variety of approaches taken by several exchanges in Canada in response to the recent tightening of cryptocurrency regulations. OKEx, a cryptocurrency exchange, made the announcement that it would be leaving Canada earlier in the month of March.
In a similar vein, Blockchain.com has announced that it will be leaving the market, and Deribit has also told its consumers of its plans to leave the market.
On the other side, Crypto.com has decided to keep running its business in Canada, and another exchange called Kraken will likely make a declaration very soon.
The fury of regulators has been directed at cryptocurrency exchanges worldwide. Coinbase was served with a Wells Notice by the Securities and Exchange Commission (SEC) over the last week, while the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance for violating derivatives regulations.
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